Sell down has largely ended for CDG. Despite heavy selling pressure and volatility in the past weeks, CDG has overcome key resistance after result fears and pessimism. As reported before in the past trading ideas, CDG remains strong in its outlook despite having challenges and competition with Grab. In preparation for the price hike in public transport, SBS transit, its public transport arm will also stand to benefit from the catalyst as well. Insights in the market also include Grab Shuttle ending its shuttle services largely due to its business unable to yield profits.

This will further channel transport revenue back to CDG in some way or another. Lastly, as mentioned in previous trading ideas for CDG, shaving of taxi businesses and cutting losses is strategic and more innovative ways can be done to generate more income from alternative business in the area of transport.

General Trend (Weekly Chart +MACD)

Fibonacci Retracement applied below

Technical Analysis summary

Closing price on 6 December showed that the selling pressure on the weekly chart has not only ended but have overpowered both horizontal and fibo resistance. Now they have both turned into substantial support unless there is a Retracement caused next week which is unlikely. Do wait for profit taking on monday to save a few cents for comms rather than buying at opening.

Closing Thoughts

Recent price depression and fluctuations should have presented multiple opportunities for small trades. Evidently, buy and hold from the trough of 2.28 several weeks ago would have yield you close to 14 cents before comms. Whereas traders would have yielded 20 cents or more after commissions. (Food for thought)

Author’s Call

• CDG has high chance of recovery after market closing on 6 Dec
• Accumulate at 2.39 to 2.42 if possible (unsure of opening price on 9 Dec)
• Next profit taking will be around 2.45 for some (do exercise restrain)
• Suggest to wait for price hike effect to kick in on Dec 28 before taking profit.

Author’s Call (As of 13 Nov)

• Short term outlook stable – consistent
• Entry at around 2.4 if it closes above 2.40 – crosses 2 resistance (9 week MA and Fibo) – maintained
• rentry at around 2.15 if it falls
• Exit at around 2.50-52
• Did not hit 2.45 according to last post on ComfortDelgro (missed target by 4 cents – high of 2.41)